BPO Philippines: The Increasing Importance Of CX

Thursday, 22 September 2022, 6:16 am
Press Release: Hugh Grant

The growth of the Business Process Outsourcing (BPO) industry over the last two decades has been an incredible testament to the dedication and perseverance of the Filipino people. Government incentives, university education, and exposure to western culture have fuelled the remarkable evolution of the Philippines' BPO sector.

The archipelago nation has emerged as the world's leading outsourcing destination, employing more than 1.3 million Filipinos. Moreover, it is expected to add more than NZD48 billion to the Philippines' GDP by the end of 2022.

“Most companies jumped on board during the early years primarily as a cost-cutting measure, but the focus has since shifted to delivering exceptional customer service," says Ralf Ellspermann, CEO of PITON-Global, a leading mid-sized BPO in the Philippines.

Creating a Better Customer Experience Through Technological Innovation

Technology has disrupted many business processes in ways that we could not have anticipated twenty, or even ten years ago. Automation and AI advance steadily, and the technology continues to take over more roles, such as highly repetitive tasks currently handled by the staff in contact centres.

However, one area that is difficult to replace with technology, even with the most advanced AI available, is direct customer service. According to Ellspermann, "Customer service requires empathy, understanding, and cultural familiarity. Philippine BPO companies are staffed by highly trained employees who are experts at understanding and delivering on customer expectations."

BPO to the Philippines as a cost-cutting strategy should emphasise delivering exceptional customer experiences (CX). Fortunately, Philippine universities supply the industry with specialist skills and advanced customer service expertise. Through their training, employees of BPO providers have an intimate understanding of customer needs, what they want, and how to use technology to excel at creating optimum outcomes.

AI research and development, a critical component of providing top-tier customer support, continues to attract billions of dollars. "Industry giants like Google, Tesla, and GE divert significant resources towards creating AI solutions. Their efforts regularly influence our daily lives through better internet search results, self-driving cars, and improved health care. In today’s world, CX and AI are closely connected," says Ellspermann.

BPOs in the Philippines must continue investing in cutting-edge technologies to remain competitive.

The Value of Exceptional Customer Service

The market for every industry has become increasingly competitive, and customer service is often the first area where businesses seek to reduce operating costs. "However, brand loyalty is elusive, with most customers willing to switch teams at the slightest transgression," says Ellspermann.

The following numbers clearly illustrate the relationship between customers and their preferred brand:

· More than 40% of customers will pay more for a better experience.

· Over 65% of customers consider excellent customer service to have more influence than advertising.

· More than 80% of customers believe that great experiences are just as important as receiving a quality product or service.

· More than 30% of customers will change brands after one bad experience.

Live agents will always be necessary for processing more complex tasks. Forward-thinking BPO providers in the Philippines understand this. They are not just investing in the technological infrastructure but also ensuring their staff are constantly developing new CX skills and have a high degree of technological literacy.

The Philippine BPO Advantage

BPO providers in the Philippines possess key advantages over those in other offshore locations. While cost savings through lower wages give them a lot of leverage, a population proficient in English, high-quality education, familiarity with western culture, and cutting-edge technology all have a role in making the Philippines the go-to nation for BPO.

The language barrier is one of the biggest factors when selecting a BPO provider in the Philippines. Low-cost providers, which are competing on price not quality, cannot afford to hire and retain the country's most skilled and English-proficient talent. Customers that engage with low-budget outsourcing providers often become frustrated and quickly abandon the effort. “Selecting a premium BPO provider staffed with employees with a high level of English proficiency may cost a few dollars more per hour than going with a low-cost vendor, but the 30-50% savings over onshore vendor rates are still significant. Only partnering with an experienced, high-quality BPO provider will ensure long-term success. Taking the low-cost route is almost always a recipe for disaster, especially in an offshore outsourcing environment,” says Ellspermann.

The Bottom Line

The Philippine government's continued backing of the industry will ensure the country maintains its competitive edge. In doing so, the nation will remain an attractive option for companies in New Zealand and Australia looking to reduce operating costs while ensuring their customers continue to receive the absolute best support, customer experience, and highest ROI.

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